Does Gérard Perrier Industrie S.A.’s (EPA:PERR) CEO Salary Reflect Performance?

François Perrier is the CEO of Gérard Perrier Industrie S.A. (EPA:PERR). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Gérard Perrier Industrie

How Does François Perrier’s Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Gérard Perrier Industrie S.A. has a market cap of €237m, and reported total annual CEO compensation of €120k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €50k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €90m to €361m. The median total CEO compensation was €372k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Gérard Perrier Industrie has changed over time.

ENXTPA:PERR CEO Compensation, January 22nd 2020
ENXTPA:PERR CEO Compensation, January 22nd 2020

Is Gérard Perrier Industrie S.A. Growing?

Over the last three years Gérard Perrier Industrie S.A. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). Its revenue is up 8.3% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Gérard Perrier Industrie S.A. Been A Good Investment?

Most shareholders would probably be pleased with Gérard Perrier Industrie S.A. for providing a total return of 67% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Gérard Perrier Industrie S.A. is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that François Perrier deserves a raise! It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Gérard Perrier Industrie.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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